USD/JPY poised for more weakness

"The Fed struck a very dovish tone, marking down its projected rate increase trajectory, while noting overall resilience in the U.S. economy and the absence of inflation pressures, this should be encouraging for risk sentiment and risk assets."
- DriveWealth LLC (based on Reuters)

Pair's Outlook
The Fed's dovish statement weakened the US currency on Wednesday, allowing the Yen to push the pair beyond the triangle pattern's support line. More bearish momentum is now expected to follow, but with the closest support located at 111.90, represented by the lower Bollinger band . Meanwhile, technical studies in the longer timeframes keep giving bearish signals, bolstering the probability of the negative outcome. Furthermore, the immediate resistance in face of the weekly S1 just above the opening price is weighing on the USD/JPY pair, but the exchange rate could still remain above 112.00, as this major level kept the US Dollar afloat for six weeks now.

Traders' Sentiment
The Greenback is somewhat overbought, as 74% of traders still hold long positions. The portion of buy orders increased from 44 to 64%.